Link Pharma Chem Limited manufactures and sells organic intermediates for pharmaceutical, agro, and specialty chemicals industries in India and internationally.
The last earnings update was 117 days ago.
More info.

The calculations below outline how an intrinsic value for
Link Pharma Chem
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

PRICE RELATIVE TO MARKET

We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for
Link Pharma Chem's
earnings,
growth
and
assets
is considered below, and whether this is a fair price.

Price based on past earnings

Are
Link Pharma Chem's earnings available for a low price, and how does
this compare to other companies in the same industry?

High Growth Checks

Link Pharma Chem's earnings are expected to grow by 13.5% yearly, however this is not considered high growth (20% yearly).

Unable to determine if Link Pharma Chem is high growth as no revenue estimate data is available.

Past and Future Earnings per Share

The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.

Past performance checks

We assess
Link Pharma Chem's performance over the past 5 years by checking for:

Has earnings increased in past 5 years? (1 check)

Has the earnings growth in the last year exceeded that of the
Chemicals
industry? (1 check)

Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)

Is the Return on Equity (ROE) higher than 20%? (1 check)

Is the Return on Assets (ROA) above industry average? (1 check)

Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)

The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
Link Pharma Chem
has a total score of
4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

524748 Health

A company's financial position is much like your own financial position,
it includes everything you own
(assets)
and owe
(liabilities).

The boxes below represent the relative size of what makes up
Link Pharma Chem's finances.

The net worth of a company is the difference between its assets and liabilities.

Net Worth

Link Pharma Chem is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Link Pharma Chem's cash and other short term assets cover its long term commitments.

Balance sheet

This treemap shows a more detailed breakdown of
Link Pharma Chem's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
checks below.

Assets

Liabilities and shares

The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.7x debt.

Historical Debt

Nearly all companies have debt. Debt in itself isn’t
bad,
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.

524748 Management

Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.

CEO

SatishThakur

COMPENSATION

₹3,921,000

AGE

67

TENURE AS CEO

9.8 years

CEO Bio

Mr. Satish G. Thakur has been Managing Director of Link Pharma Chem Ltd. since July 2009 and has been its Executive Director since December 28, 1984. Mr. Thakur holds rich experience of Company Management. He is Licenciate of Technical Chemistry.

CEO Compensation

Satish's compensation has been consistent with company performance over the past year, both up more than 20%.

Satish's remuneration is higher than average for companies of similar size in India.

Management Team Tenure

Average tenure of the
Link Pharma Chem
management team in years:

3.7

Average Tenure

The tenure for the Link Pharma Chem management team is about average.

Management Team

Balvant Retarekar

TITLE

Executive Chairman

COMPENSATION

₹4M

AGE

63

Satish Thakur

TITLE

MD & Executive Director

COMPENSATION

₹4M

AGE

67

TENURE

9.8 yrs

Ravindra Bedekar

TITLE

Chief Financial Officer

COMPENSATION

₹293K

TENURE

3.7 yrs

Bhushan Joshi

TITLE

Compliance Officer & Company Secretary

COMPENSATION

₹217K

TENURE

3.7 yrs

Board of Directors Tenure

Average tenure and age of the
Link Pharma Chem
board of directors in years:

7.8

Average Tenure

64.5

Average Age

The tenure for the Link Pharma Chem board of directors is about average.

524748 News

Simply Wall St News

524748 Company Info

Description

Link Pharma Chem Limited manufactures and sells organic intermediates for pharmaceutical, agro, and specialty chemicals industries in India and internationally. The company was incorporated in 1984 and is based in Vadodara, India.

Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.